Regulatory costs contribute towards WBX closure

Regulatory costs contribute towards WBX closure

Malcolm Gray, chief executive officer of World Bet Exchange (WBX), has confirmed that the UK-based person-to-person betting exchange is to close due to pressure from costs related to UK regulatory compliance.

WBX first launched in November 2006 and ran a betting model based on taking a percentage of winners’ profits on bets on an exchange where players could both back or lay the outcome of sporting events and horse races. The company had marketed itself on charging less commission from rival operators such as Betfair in an effort to gain more custom.

However, Gray confirmed that WBX had ceased trading and would no longer accept new bets, although any unsettled bets on longer-term markets will be honoured, and customers will be able to withdraw any remaining funds in their accounts.

Gray cited the impact of the cost of regulatory compliance in the UK market and strong competition from Betfair as the main reasons behind WBX’s demise.

“I have always taken a long view with WBX and believed that we'd become a genuine alternative to Betfair on the strengths of our great platform and commitment to putting every exchange player back in control,” Gray said.

“Unfortunately the business strategy is no longer viable due to the rising costs of regulatory compliance and levies in the United Kingdom, along with the increasingly prohibitive stance of various betting jurisdictions.

“Though I am of course disappointed that WBX is closing, I am proud of my team and the fairness in which the exchange has operated for almost 10 years.

“Please rest assured that WBX will continue to service its members and affiliates in the same spirit during the wind-down period. Thank you for your support.”

WBX did not respond to a request from TotallyGaming.com to expand on the reasons behind the closure or if it had any plans to re-launch the service in the future.